FAIRHAVEN, Mass. -- Because of its ongoing patent dispute with Callaway Golf, the Acushnet Co. has initiated a retail product exchange program for its Titleist Pro V1 golf balls, company officials have announced.

At the same time, Acushnet officials said they will move forward with the appeals process after a U.S. District Court denied their request for a stay of an injunction against the sale of certain Pro V1 models that Callaway Golf claims infringe on its patents.

In September of 2008, Titleist converted its production of existing Pro V1 model balls to be outside the disputed patents, Acushnet officials said, adding that they began shipping the new, or "converted," balls to retailers in November. Acushnet has requested that, as of Jan. 1, retailers sell only these converted Pro V1 and Pro V1x balls.

There are limited numbers of the old Pro V1 balls in retail inventory, and Acushnet has requested that retailers exchange them for the converted product. The converted balls can be identified by a black or red circle on the dozen box and sleeves.

The injunction and exchange program are limited to the United States and do not apply to retailers, distributors or tour usage outside of the United States. Details of the product exchange program have been communicated directly to retailers and are available at www.titleist.com.

"We have made every possible effort to ensure that this legal dispute did not find its way into the golf marketplace," said Acushnet Chairman and CEO Wally Uihlein. "Unfortunately, our attempts to resolve the difference of opinion on the retail inventory issue with Callaway have been unsuccessful. As a result, we decided that it is critical to remove this uncertainty for golf retailers and minimize any impact on their business, particularly during these already challenging times."

On Nov. 10, 2008, the U.S. District Court in Delaware granted Callaway Golf's request for an injunction in a dispute with respect to four Callaway patents and Acushnet's Titleist Pro V1 golf balls. Acushnet filed an appeal on Nov. 19 to seek relief from the injunction, and to appeal the district court actions and other of the court's decisions.

Although a stay of the injunction was not granted, Acushnet plans to continue to defend its position that all claims are invalid, officials said. The appeal will include the fact that the U.S. Patent and Trademark Office has issued final office actions that have determined these patents to be invalid, they added.

The Appeals Court will next review these complex issues in far greater detail and will likely render a decision sometime late in 2009.

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